Hello fellow readcashers. This is Herbert coming to your screens once again. This is the first edition of the caption"financial management". With the title, "A part of what you earn is for you to keep". Suscribe, comment and like. Thank you.

Principle 1.

I read a book on the subject of the personal finances and one of the earliest I read during Vacation was George Clason's, richest man in Babylon; and I recommend this book for each and every person here. It's a narration of the story of the ancient people in Babylon and the strategies applied into becoming one of the wealthiest cities in the world at that time, those principles still hold today. Principles, in effect, do not change.

Part of what you earn is for you to keep

Now what do I mean by the above caption.?

"Pay yourself first" means before you pay for any expenses after receiving your money or income, a part of what you earn is for you to keep. You need to take out a fixed amount out of your income for savings-that is what you will pay yourself with.

The 80-10-10 rule

This simply means that anytime you earn some money, you pay 10% in tithe or other form of giving based on your religion. The next 10% in a savings or investment account, then the remaining 80% for your own expenditure.Until you take out your initial 10-10. don't spend the rest 80%.

The 10% you put in an investment or savings account becomes a seed for a future money tree if you will be dedicated to adding more and more to it every month or week while it attracts interest.

The power of habits.

Now to be consistent in your savings there is something we call habits. The more you do it the more it becomes a part of you. There is a thing about habits that we've got to understand; it becomes a part of us and very difficult to break. In effect,if you have a poor savings culture and a bad spending habit, it becomes tough for you to break when you have a family. It is ,therefore imperative to begin cultivating a healthy spending and savings habit as early as possible. Cultivating such healthy habits become a part of you and very useful in a family setting.

If you are unable to spend wisely and invest a part of what you make while single, there is no guarantee that you can ever do it when you get married. I believe the best time for any young person to save in order to create a strong financial foundation is within the first five years or so when they are out of school and begin to work; a time when they have no direct family dependants.

Well, someone could be asking, "How can I live on just 80% of my salary when I struggle with 100%???

This leads us to the second principle..........

Control your expenditure!...

Of course you ought to control your expenditure so as not to spend too much on something. there is one universal truth about humans and that is our wants are insatiable. All our wants and never be satisfied I can give you a million dollars to buy all you want you may come back that there is more you could have bought but the money wasn't enough that is how I wants are imsatiable. It is natural about humans.

You may want to buy the latest phones cars laptops clothing designs and soon yet you will always want more. We are all in one way all the other like Oliver twist who asked for more. If our wants are insatiable that simply means we can't spend all our years working and trying to satisfy them because one thing is certain we will fail at it one day. The key there for is for us to exercise a great deal of discipline in our spending especially on things that add little value to us.

food, clothing and housing are a necessity. We can't do without them. These are needs we must meet to be able to live comfortably. Even that there is some restraints you can exercise on how much food and clothing is spend on. It is no wonder you visit homes where food is thrown into the trash bin. That is an absolute waste of financial resources!

Do you know that....

Do you know that all the clothing you own in your wardrobe, you use 20% of them at 80% of the time while the rest 80% at 20% of the time? Yet,you will keep buying and buying and never wearing them at all. will you not be better off saving what you spend every now and then on clothing? That is not to see you shouldn't put up a good appearance. A good way to streamline how much you spend every now and then on clothing, for instance if you have a regular time frame within which you can shop for clothing. You don't just walk into a shop and buy on impulse.

to reduce unplanned purchases be disciplined and prepare a budget that you stick to. A budget does not only help you spend wisely it also helps you to track what you are spending on stick to a monthly or biannual budget. It is a wise way to spend money wisely and avoid impulse buying.

I hope this article was informative enough.

Thank you.